28th Jan 2014 10:08
LONDON (Alliance News) - Wynnstay Group PLC said Tuesday that it had raised its total dividend, as revenue and pretax profit rose in the year ended October 31, 2013.
The agricultural products company posted a final dividend of 6.20 pence, bringing its total dividend for the year up to 9.30 pence, an increase of 9% from 8.50 pence the previous year.
Pretax profit was GBP8.0 million, up from GBP7.8 million in the previous year, reflecting higher revenue of GBP413.5 million, up from GBP375.8 million in the previous year.
Wynnstay saw a good performance from its Agricultural Division as sales of feed and raw materials increased, but grain volumes declined due to a poor harvest in 2012.
In its Specialist Retail Division, revenue grew 12% as its Wynnstay Stores chain, Young Animal Feed and Just for Pets pet-product businesses all performed well.
Wynnstay acquired Carmarthen & Pumsaint Farmers Ltd in October, and said the integration of the new business is progressing well. Wynnstay posted exceptional costs of GBP350,000 as a result of the acquisition and reorganisation of its business.
The company remained cautious about the UK agricultural industry, noting that world food demand continues to increase and commodity prices remain volatile. Although increased demand was beneficial, the company noted that UK agriculture would face further challenges as the EU Common Agricultural Policy reforms are implemented in the coming years.
The details of the CAP reforms have not been finalised, but Wynnstay said there would be a change of the distribution of funding.
The company said mild winter conditions at the start of 2014 had tempered demand for feed and raw materials, but that its broad base of business would provide a buffer.
Shares in Wynnstay were trading up 0.9%, or 6.00 pence, at 650.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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